Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q2 2023 Earnings Presentation
22 slides from Carlisle Companies's earnings presentation, Jul 26, 2023
Slide 1: 2nd Quarter 2023 Earnings Call
nd 2 Quarter 2023 Earnings Call July 26, 2023
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project,"
Slide 3: 2Q23 Results Financial Summary
2Q23 Results Financial Summary 2Q Revenue decreased 14% y/y due to: (in millions, except per share amounts and percentages) 2Q23 2Q22 Δ » Continued destocking activity in non-residential Revenues $1,525.9 $1,774.9 (14.0)% roofing and difficult y/y comparisons » Volume declines in residential markets
Slide 4: Portfolio Transformation Ongoing With Pivot to a Premier Diversified Building Products Platform
Portfolio Transformation Ongoing With Pivot to a Premier Diversified Building Products Platform Pre-Pivot: Carlisle was a Diversified Industrial Today: A Focused Platform $2.6B $3.7B ~$5.5B Revenue Revenue Revenue in 2006 in 2016 in 2023E » Diversified platform managed » Consolidated platform segmen
Slide 5: Investing in Energy Efficiency: Sikeston, MO Polyiso Facility
Investing in Energy Efficiency: Sikeston, MO Polyiso Facility » Built for LEED® Platinum certification • Will be the first v4 LEED Platinum Industrial facility in the US » Incorporated the latest advancements in green building technology • Solar power generation • Energy base load control systems »
Slide 6: Vision 2025 Put Our Foundational Pillars In Place
Vision 2025 Put Our Foundational Pillars In Place » Deliver mid-single-digit organic revenue growth » Utilize the Carlisle Operating System ("COS") effectively to enhance productivity » Seek accretive, strategic acquisitions with a focus on Building Products » Maintain a disciplined, returns-focused
Slide 7: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended June 30, Acquisition Exchange Organic (in millions, except percentages) 2023 2022 Change $ Change % Effect Rate Effect Revenues $ 947.5 $ 1,113.4 $ (165.9) (14.9)% (14.9)% —% —% Operating income $ 280.7 $ 358.9 $ (78.2) (21.8)% Operating margin 29.6
Slide 8: Carlisle Weatherproofing Technologies
Carlisle Weatherproofing Technologies Three Months Ended June 30, Acquisition Exchange Organic (in millions, except percentages) 2023 2022 Change $ Change % Effect Rate Effect Revenues $ 359.5 $ 448.9 $ (89.4) (19.9)% (19.6)% —% (0.3)% Operating income $ 59.5 $ 59.0 $ 0.5 0.8 % Operating margin 16.6
Slide 9: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended June 30, Acquisition Exchange Organic (in millions, except percentages) 2023 2022 Change $ Change % Effect Rate Effect Revenues $ 218.9 $ 212.6 $ 6.3 3.0 % 3.2 % —% (0.2)% Operating income $ 19.7 $ 7.9 $ 11.8 149.4 % Operating margin 9.0 % 3.7 %
Slide 10: 2Q23 Adjusted EPS Bridge
2Q23 Adjusted EPS* Bridge $6.00 $0.08 $0.12 $0.21 $(0.09) $5.18 $0.38 $(1.52) 2Q22 Adj. EPS* Volume/Price/Mix Materials/Freight/Labor COS Share Repurchases Interest/Tax Opex/Other 2Q23 Adj. EPS* * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial me
Slide 11: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Debt Maturity Schedule » Cash on hand of $379.3M as of June 30, 2023 » $1.0B available under revolver Senior Senior Note Note » $38.3M in dividends paid in 2Q23 $750M $750M 2.75% » Deployed $200.0M of cash to repurchase 0.9M Senior Senior Note Note Senior sh
Slide 12: 2Q23 Cash Flow Performance
2Q23 Cash Flow Performance $350 $333.0 $300 $69.6 $250 $222.2 $195.8 (in millions) $200 $172.3 $79.7 $29.7 $150 $49.1 $263.4 $100 $166.1 $142.5 $123.2 $50 $0 2Q23 2Q22 YTD23 YTD22 Operating Cash Flow from Continuing Operations* Capital Expenditures from Continuing Operations* Free Cash Flow from Con
Slide 13: FY 2023 Outlook
FY 2023 Outlook Year-over-Year Change Primary Drivers • Challenging year-over-year comparisons; Channel destocking in 2023 CCM Revenue Down low-teens • Project delays due to weather; limited contractor labor constraining recovery • Contractor backlog remains strong • Headwinds in residential markets
Slide 14: Financial Reconciliations
Le C ARLISL E 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 15: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics This presentation includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Adjusted EBITDA, which the Company defines as net income excluding income/loss from d
Slide 16: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended June 30, (in millions, except percentages) CSL CCM CWT CIT 2022 Revenue (GAAP) $ 1,774.9 $ 1,113.4 $ 448.9 $ 212.6 Organic (246.8) (13.9)% (165.4) (14.9)% (88.1) (19.6)% 6.7 3.2 % Acquisitions — —% — —% — —% — —% FX impact (2.2) (0.1)% (0.5) —% (1
Slide 17: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Operating cash flow (GAAP) $ 221.1 $ 179.2 $ 370.7 $ 223.5 Less: operating cash flow from discontinued operations 25.3 6.9 37.7 1.3 Operating cash flow from continuing operations
Slide 18: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, (in millions, except percentages) 2023 2022 Net income (GAAP) $ 194.6 $ 301.5 Less: (loss) income from discontinued operations (GAAP) (46.9) 10.7 Income from continuing operations (GAAP) 241.5Senior 290.8 Provision for income taxes 71.6 N
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2023 Corporate and (in millions, except percentages) CCM CWT CIT unallocated Operating income (loss) (GAAP) $ 280.7 $ 59.5 $ 19.7 Senior $ (32.3) Non-operating (income) expense, net(1) (0.2) 0.4 0.5 Note (0.5) EBIT 280.9 59.1 19.2 $750 (3
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, 2022 Corporate and (in millions, except percentages) CCM CWT CIT unallocated Operating income (loss) (GAAP) $ 358.9 $ 59.0 $ 7.9 $ (22.2) (1) Non-operating expense (income), net 0.9 0.1 (0.3) 1.6 EBIT 358.0 58.9 8.2 (23.8) Exit and dispos
Slide 21: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Pre-tax Post-tax Impact to Pre-tax Post-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 194.6 $ 3.79 $ 30
Slide 22: Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios
Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions, except ratios) LTM 6/30/2023 (in millions, except percentages) 6/30/2023 Income from continuing operations (GAAP) $ 768.3 Long-term debt, including current por